Provided By KW
Friday, April 20, 2012
Wednesday, April 18, 2012
It's Buying Time Again, Big Time
Provided By Realty Times
If you've got the income. If you've got plenty of tenure on the job. If your credit is solid. If you can otherwise past muster at the mortgage loan desk. If it's cheaper for you to buy than it is to rent.
Yes, there are lots of "ifs," but it's one of the best times in America to buy a home. And it won't last forever.
To wit
• Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales, according to the National Association of Realtors (NAR). The bargain basement is open for business.
• Investors know a party when they see one. They snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, NAR reported.
• The second home market is back with a vengeance. Both investors and playhouse buyers are jumping on this bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.
• Meanwhile, owner-occupied purchases fell 15.5 percent last year.
Numbers talk
The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, which means you may have already missed rock-bottom in this sector.
The median sales prices for vacation properties was $121,300 in 2011, down 19 percent from 2010, which means you may still have a shot at the basement here.
Likewise, NAR reported the median price of all single-family homes dropped 4 percent from $170,600 to $163,500 in the fourth quarter 2010 to 2011 and, during the same period, condo prices fell almost 2 percent $163,500 to $160,800.
Housing market forecasts for a recovery remain mixed, but it's about when, not if. If this isn't the Year of the Dragon for the housing market, it could begin to breathe fire next year.
But consider many of those forecasts are based on lagging information. One study by John Burns Consulting says many are lagging by a full quarter and prices have been rising in many markets for a full quarter.
And then there are those record low interest rates.
Don't get behind the curve and wait until a line forms and multiple offers are the norm, rather than the exception.
"Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today's market," said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez.
"But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner," Rodriguez added.
NeighborWorks' advice
• Be mortgage ready. If you haven't already, check your credit reports from the only federally-sanctioned source of free reports, AnnualCreditReport.com, to make sure your credit is mortgage worthy. Don't get taken by sound-alike websites that offer you "free" credit reports that are only "free" after you buy a credit monitoring service.
Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost or no mortgage at all. Work with a homeownership advisor at a NeighborWorks HomeOwnership Center or other NeighborWorks organization to start the homeownership process.
• Know all your costs. More than just a mortgage payment, homeownership comes with insurance, tax, utility, maintenance and transportation costs, among others. Include them in your budget to determine what is truly affordable.
• Know your mortgage. Fixed-rate mortgages (FRMs) offer payment certainty, while adjustable rate mortgages (ARMs) frequently provide lower initial monthly payments, but those low rates could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.
• Hire good help. Get a licensed real estate agent who knows the market. It's easy to go digital and browse for housing. Actually going through the process and closing on a home without professional assistance is something else. Ask any FSBO (for sale by owner).
• Take your time. There may be some pressure to get in the market at today's affordable prices and low interest rates, but if you move too quickly that could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district and buy only what you can truly afford, not a home based on the largest loan the lender will lend.
If you've got the income. If you've got plenty of tenure on the job. If your credit is solid. If you can otherwise past muster at the mortgage loan desk. If it's cheaper for you to buy than it is to rent.
Yes, there are lots of "ifs," but it's one of the best times in America to buy a home. And it won't last forever.
To wit
• Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales, according to the National Association of Realtors (NAR). The bargain basement is open for business.
• Investors know a party when they see one. They snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, NAR reported.
• The second home market is back with a vengeance. Both investors and playhouse buyers are jumping on this bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.
• Meanwhile, owner-occupied purchases fell 15.5 percent last year.
Numbers talk
The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, which means you may have already missed rock-bottom in this sector.
The median sales prices for vacation properties was $121,300 in 2011, down 19 percent from 2010, which means you may still have a shot at the basement here.
Likewise, NAR reported the median price of all single-family homes dropped 4 percent from $170,600 to $163,500 in the fourth quarter 2010 to 2011 and, during the same period, condo prices fell almost 2 percent $163,500 to $160,800.
Housing market forecasts for a recovery remain mixed, but it's about when, not if. If this isn't the Year of the Dragon for the housing market, it could begin to breathe fire next year.
But consider many of those forecasts are based on lagging information. One study by John Burns Consulting says many are lagging by a full quarter and prices have been rising in many markets for a full quarter.
And then there are those record low interest rates.
Don't get behind the curve and wait until a line forms and multiple offers are the norm, rather than the exception.
"Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today's market," said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez.
"But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner," Rodriguez added.
NeighborWorks' advice
• Be mortgage ready. If you haven't already, check your credit reports from the only federally-sanctioned source of free reports, AnnualCreditReport.com, to make sure your credit is mortgage worthy. Don't get taken by sound-alike websites that offer you "free" credit reports that are only "free" after you buy a credit monitoring service.
Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost or no mortgage at all. Work with a homeownership advisor at a NeighborWorks HomeOwnership Center or other NeighborWorks organization to start the homeownership process.
• Know all your costs. More than just a mortgage payment, homeownership comes with insurance, tax, utility, maintenance and transportation costs, among others. Include them in your budget to determine what is truly affordable.
• Know your mortgage. Fixed-rate mortgages (FRMs) offer payment certainty, while adjustable rate mortgages (ARMs) frequently provide lower initial monthly payments, but those low rates could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.
• Hire good help. Get a licensed real estate agent who knows the market. It's easy to go digital and browse for housing. Actually going through the process and closing on a home without professional assistance is something else. Ask any FSBO (for sale by owner).
• Take your time. There may be some pressure to get in the market at today's affordable prices and low interest rates, but if you move too quickly that could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district and buy only what you can truly afford, not a home based on the largest loan the lender will lend.
Monday, April 16, 2012
RED DAY-Save the Date May 10, 2012
Dear Rockwall Community,
There is still a lot to do in preparation for our annual RED DAY Event! This year, RED DAY will be on Thursday May 10, 2012 at the Boys and Girls Club of Rockwall. We will be volunteering our time to help towards the Boys and Girls Club Summer Program. We are in need of:
Paint Supplies (ex. brushes, rollers, stir sticks, etc...)
Donations
Help in Building Shelves
YOU!
If you would like a KW Red Shirt, or if you are bringing someone who needs to purchase a Red t-shirt stop by the Front Desk! Also, don't forget to share this event with everyone you know! The more people we can get to help, the BETTER! Sign up is at the Front Desk!!!!!
KW Cares
There is still a lot to do in preparation for our annual RED DAY Event! This year, RED DAY will be on Thursday May 10, 2012 at the Boys and Girls Club of Rockwall. We will be volunteering our time to help towards the Boys and Girls Club Summer Program. We are in need of:
Paint Supplies (ex. brushes, rollers, stir sticks, etc...)
Donations
Help in Building Shelves
YOU!
If you would like a KW Red Shirt, or if you are bringing someone who needs to purchase a Red t-shirt stop by the Front Desk! Also, don't forget to share this event with everyone you know! The more people we can get to help, the BETTER! Sign up is at the Front Desk!!!!!
KW Cares
Friday, April 13, 2012
Banks Upbeat About Mortgage Performance, Looser Credit Looms
Provided By Realty Times
Mortgage lenders aren't rolling out the red carpet on home loans just yet, but with fewer delinquencies and defaults, there's optimism looser credit for home loans has become a topic of board room chatter.
FICO's first quarter survey of bank risk professionals found sentiments about loan repayment and credit availability more upbeat than in the last quarter.
The survey, conducted for FICO by the Professional Risk Managers' International Association (PRMIA), found fewer lenders expecting a rise in delinquencies on home loans, as well as car loans and small business loans, than at any time since FICO launched its survey in early 2010. The survey also examined sentiments on student loans and credit cards.
"As unemployment falls, even modestly, and four years of de-leveraging begin to pay dividends, bankers are allowing themselves to feel some optimism," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. FICO is a leader in credit scoring systems.
The survey found the number of respondents expecting mortgage delinquencies to rise during the next six months was 12 percentage points lower than last quarter – dropping from 47 to 35 percent. Similarly, only 33.1 percent expect increases in home equity line delinquencies, compared to 44.3 percent last quarter. The overall trend in both categories has been trending more optimistic for the past eight quarters, FICO reported. Viewed another way, the number of respondents who believe mortgage and home equity line delinquencies will decrease hit an all time high, 26 percent and 23.1 percent respectively.
Optimistic reports
Another recent survey indicates lenders' expectations are on track. Home loan performance is already improving.
Lender Processing Service's (LPS) Mortgage Monitor report for February revealed the mortgage delinquency rate was down 5 percent month-over-month and 14 percent since last year. The 90-plus delinquency rate saw a monthly and yearly decline at 1.8 and 8 percent, respectively. LPS also found, while foreclosure inventories are still high, foreclosure starts were down 15.2 percent since January and 8.4 percent since February last year.
Lenders do, however, expect to see more strategic defaults, as consumers throw up their hands and walk away from their mortgage, even if they can afford it.
FICO found that 45.5 percent of lenders believe they will see an increase in strategic defaults in 2012 over 2011. Only 35.5 percent believe fewer homeowners will walk away, 19.2 percent of lenders were undecided on the issue.
Many homeowners are actually driving away from their homes.
Nearly half (49.2 percent) of lenders in the FICO study believe that the current generation of homeowners no longer considers their mortgages to be their most important credit obligation. Indeed, TransUnion recently found, among credit delinquent consumers, 39.1 were delinquent on a mortgage while current on their auto loans and credit cards. Far fewer were delinquent on credit cards (17.3 percent) or auto loans (9.5 percent) while current on their mortgages.
Lenders remain tight fisted
Even with refinance mortgage rates at record lows, some of that walk-away or drive-away behavior stems from the inability to draw equity, refinance the mortgage or obtain some kind of home loan workout.
Lenders aren't completely sold on the idea that a housing recovery is afoot. Mortgage credit remains too tight. In the FICO survey, the majority, 56 percent, believe the credit supply will not meet demand for residential mortgages over the next six months. However, the other 44 percent said the credit supply will either match or exceed mortgage demand.
"As lending risk - both perceived and real - declines, the natural reaction by lenders is to loosen the purse strings and extend more credit. This should be welcome news to consumers and businesses alike, because increased access to credit is a key driver of economic growth," Jennings said.
Mortgages could use some help with growth. LPS said new mortgage originations in January to February fell hard, dropping 16.9 percent, the year-to-year drop in mortgage starts was identical, down 16.9 percent.
There's hope.
In the FICO survey of lenders, a majority, 53.1 percent, believe that the housing market will be stronger at the end of the year than it is now.
"Of course, we're not out of the woods. Foreclosures continue to put pressure on home prices, and jobs are coming back slowly. But we seem to be headed in the right direction," said Jennings.
Mortgage lenders aren't rolling out the red carpet on home loans just yet, but with fewer delinquencies and defaults, there's optimism looser credit for home loans has become a topic of board room chatter.
FICO's first quarter survey of bank risk professionals found sentiments about loan repayment and credit availability more upbeat than in the last quarter.
The survey, conducted for FICO by the Professional Risk Managers' International Association (PRMIA), found fewer lenders expecting a rise in delinquencies on home loans, as well as car loans and small business loans, than at any time since FICO launched its survey in early 2010. The survey also examined sentiments on student loans and credit cards.
"As unemployment falls, even modestly, and four years of de-leveraging begin to pay dividends, bankers are allowing themselves to feel some optimism," said Dr. Andrew Jennings, chief analytics officer at FICO and head of FICO Labs. FICO is a leader in credit scoring systems.
The survey found the number of respondents expecting mortgage delinquencies to rise during the next six months was 12 percentage points lower than last quarter – dropping from 47 to 35 percent. Similarly, only 33.1 percent expect increases in home equity line delinquencies, compared to 44.3 percent last quarter. The overall trend in both categories has been trending more optimistic for the past eight quarters, FICO reported. Viewed another way, the number of respondents who believe mortgage and home equity line delinquencies will decrease hit an all time high, 26 percent and 23.1 percent respectively.
Optimistic reports
Another recent survey indicates lenders' expectations are on track. Home loan performance is already improving.
Lender Processing Service's (LPS) Mortgage Monitor report for February revealed the mortgage delinquency rate was down 5 percent month-over-month and 14 percent since last year. The 90-plus delinquency rate saw a monthly and yearly decline at 1.8 and 8 percent, respectively. LPS also found, while foreclosure inventories are still high, foreclosure starts were down 15.2 percent since January and 8.4 percent since February last year.
Lenders do, however, expect to see more strategic defaults, as consumers throw up their hands and walk away from their mortgage, even if they can afford it.
FICO found that 45.5 percent of lenders believe they will see an increase in strategic defaults in 2012 over 2011. Only 35.5 percent believe fewer homeowners will walk away, 19.2 percent of lenders were undecided on the issue.
Many homeowners are actually driving away from their homes.
Nearly half (49.2 percent) of lenders in the FICO study believe that the current generation of homeowners no longer considers their mortgages to be their most important credit obligation. Indeed, TransUnion recently found, among credit delinquent consumers, 39.1 were delinquent on a mortgage while current on their auto loans and credit cards. Far fewer were delinquent on credit cards (17.3 percent) or auto loans (9.5 percent) while current on their mortgages.
Lenders remain tight fisted
Even with refinance mortgage rates at record lows, some of that walk-away or drive-away behavior stems from the inability to draw equity, refinance the mortgage or obtain some kind of home loan workout.
Lenders aren't completely sold on the idea that a housing recovery is afoot. Mortgage credit remains too tight. In the FICO survey, the majority, 56 percent, believe the credit supply will not meet demand for residential mortgages over the next six months. However, the other 44 percent said the credit supply will either match or exceed mortgage demand.
"As lending risk - both perceived and real - declines, the natural reaction by lenders is to loosen the purse strings and extend more credit. This should be welcome news to consumers and businesses alike, because increased access to credit is a key driver of economic growth," Jennings said.
Mortgages could use some help with growth. LPS said new mortgage originations in January to February fell hard, dropping 16.9 percent, the year-to-year drop in mortgage starts was identical, down 16.9 percent.
There's hope.
In the FICO survey of lenders, a majority, 53.1 percent, believe that the housing market will be stronger at the end of the year than it is now.
"Of course, we're not out of the woods. Foreclosures continue to put pressure on home prices, and jobs are coming back slowly. But we seem to be headed in the right direction," said Jennings.
Wednesday, April 11, 2012
Top Design Tips for Your Deck Project
Provided By Handy American
Stretch your living space out into the backyard with a deck. An ideal spot for relaxing, dining al fresco and enjoying the warmth of the season, a deck project adds a lot of value to your home and lifestyle. The perfect deck design contains certain essential elements that come together in a customized space.
Tip 1 – Build Around What You Have
While it is possible to alter the grading in your yard (most often with heavy machinery and a big budget), you’re better off to design a deck that works with and compliments the existing lay of the land. Some minor excavation is usually required, but you can avoid major changes and end up with a more flowing landscape.
Tip 2 – Minimal Spaces
There is a general rule for deck and patio sizing that will provide enough room to be comfortable in and still allow you to appreciate your surroundings. In a seating area you will need to design for 10 feet by 10 feet at a minimum. That size will hold a standard sized patio set while still providing for traffic space around the table. For every area (or room) you should have at least that space.
Tip 3 – Counter Drainage Issues With Solutions
If there are drainage problems or potential issues building a deck provides a good time to apply solutions. At the very least, be sure not to add to any drainage issues. Consider laying landscape fabric and a layer of “A” gravel to help with water flow under your deck.
Tip 4 – Find Out Your Outdoor Personality
Not everyone enjoys the same atmosphere outside their home and your deck design should incorporate that. If you enjoy the order of a Japanese garden or the diversity of a more relaxed layout the best style of deck will reflect that. Play off the natural elements found in the surrounding area and watch the deck become a pat of your backyard instead of something that stands alone.
Tip 5 – Always Design for Traffic Flow
Not just a location to sit back and relax on, your deck often serves as a pathway into the backyard or onto the lawn. In your mind go over the paths of traffic and make sure the deck you build will cater to these. Add railings for better stability or wider steps to make traveling up and down easier.
Tip 6 – Cooking Outside is Heating Up
Consider the benefits of preparing meals outside. Not only does grilling save on cooling costs by keeping the heat out of the kitchen, it also allows you to create delicious taste sensations in your own backyard. Install an outdoor kitchen complete with built in stainless steel bbq, warming trays and even sinks with plumbing. The entire culinary experience tastes better on a well designed deck.
Tip 7 – Keep It Shady
Always be sure to provide a decent amount of shade on your deck. If that’s not possible from a construction and location standpoint, plan to purchase an awning, gazebo or large patio umbrella. Mature trees can provide only a dappled shade. Keeping sun off part of the deck or for a certain time of day will also protect the decking material from fading and drying.
Deck design is a matter of considering your priorities and the lay of the existing property. Be sure to include essential elements like shade, good traffic flow, an outdoor kitchen and plenty of room. Take the time to think about the design and you’re sure to end up with the ideal outdoor living space for your family.
Stretch your living space out into the backyard with a deck. An ideal spot for relaxing, dining al fresco and enjoying the warmth of the season, a deck project adds a lot of value to your home and lifestyle. The perfect deck design contains certain essential elements that come together in a customized space.
Tip 1 – Build Around What You Have
While it is possible to alter the grading in your yard (most often with heavy machinery and a big budget), you’re better off to design a deck that works with and compliments the existing lay of the land. Some minor excavation is usually required, but you can avoid major changes and end up with a more flowing landscape.
Tip 2 – Minimal Spaces
There is a general rule for deck and patio sizing that will provide enough room to be comfortable in and still allow you to appreciate your surroundings. In a seating area you will need to design for 10 feet by 10 feet at a minimum. That size will hold a standard sized patio set while still providing for traffic space around the table. For every area (or room) you should have at least that space.
Tip 3 – Counter Drainage Issues With Solutions
If there are drainage problems or potential issues building a deck provides a good time to apply solutions. At the very least, be sure not to add to any drainage issues. Consider laying landscape fabric and a layer of “A” gravel to help with water flow under your deck.
Tip 4 – Find Out Your Outdoor Personality
Not everyone enjoys the same atmosphere outside their home and your deck design should incorporate that. If you enjoy the order of a Japanese garden or the diversity of a more relaxed layout the best style of deck will reflect that. Play off the natural elements found in the surrounding area and watch the deck become a pat of your backyard instead of something that stands alone.
Tip 5 – Always Design for Traffic Flow
Not just a location to sit back and relax on, your deck often serves as a pathway into the backyard or onto the lawn. In your mind go over the paths of traffic and make sure the deck you build will cater to these. Add railings for better stability or wider steps to make traveling up and down easier.
Tip 6 – Cooking Outside is Heating Up
Consider the benefits of preparing meals outside. Not only does grilling save on cooling costs by keeping the heat out of the kitchen, it also allows you to create delicious taste sensations in your own backyard. Install an outdoor kitchen complete with built in stainless steel bbq, warming trays and even sinks with plumbing. The entire culinary experience tastes better on a well designed deck.
Tip 7 – Keep It Shady
Always be sure to provide a decent amount of shade on your deck. If that’s not possible from a construction and location standpoint, plan to purchase an awning, gazebo or large patio umbrella. Mature trees can provide only a dappled shade. Keeping sun off part of the deck or for a certain time of day will also protect the decking material from fading and drying.
Deck design is a matter of considering your priorities and the lay of the existing property. Be sure to include essential elements like shade, good traffic flow, an outdoor kitchen and plenty of room. Take the time to think about the design and you’re sure to end up with the ideal outdoor living space for your family.
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